Jiashitang (002462): Beijing’s business in a stable transition and the continued expansion of its business
Company dynamics The company released the 2018 annual report.
Event commentary The performance was in line with expectations, and the Beijing region’s stable business transition company realized operating income of 179 in 2018.
600,000 yuan, an annual increase of 26.
13%, of which 2018Q4 achieved operating income of 47.
9.6 billion, an annual increase of 19.
By region, the company achieved operating income of 80 in Beijing in 2018.
8.6 billion, an increase of 10 in ten years.
78%, the company further strengthened the drug sales business in Beijing, and ensured a smooth transition in the implementation of the two-drug system in Beijing and the reform and adjustment of national base medicines. The revenue grew steadily, but the growth rate accelerated in 2017. The operating income was realized in other regions95.
4.5 billion, an annual increase of 37.
54%, maintaining a rapid growth trend.
The period expense rate increased slightly every year. The company realized net profit attributable to its mother in 2018.
2.8 billion, an annual increase of 24.
27%; net profit deduction for non-attributed mothers3.
2.4 billion, an annual increase of 22.
In terms of quarters, the company achieved zero net profit attributable to its mother in 2018Q4.
6.7 billion, an annual increase of 6.
59%, lower than the growth rate of revenue, first of all, the company’s expense ratio increased during the period, the base in the same period last year, and other factors; realizing net profit attributable to mother 0.
6.7 billion, an annual increase of 16.
The company’s gross profit margin for sales in 2018 was 9.
92%, a year-on-year increase of 0.
For 70 single companies, the company’s operating costs in Beijing exceeded the growth rate and exceeded the revenue growth rate, which drove the company’s overall gross profit level to rise slightly.
Expenses for the company during 20185.
68%, a year-on-year increase of 0.
6北京桑拿洗浴保健2 totals, of which selling expenses expenses3.
33 samples), and sales expenses decreased by 1.
03 budgets), financial expenses 1.
26 expenses), the primary reason for the increase in financial expense ratio is the increase in short-term financing and other factors.
The outer packaging business continued to make efforts to further expand the layout of the outer packaging business. In 2016, the company’s device subsidiary and a pharmaceutical subsidiary totaled 114 operating revenues.
08 million yuan, an annual increase of 43.
20%; realized operating profit of 5.
9.7 billion, an annual increase of 20.
32%; realized net profit4.4.7 billion, an annual increase of 18.
Among them, Jiashi Rongjin acquired by the company in 2017, Jiashi Tonghan, and Jiashi Shangyang achieved consolidation in the second half of 2017. After the combined results in 2018, total operating income was achieved, and net profit was 14 respectively.
9.7 billion, 0.
72 trillion U.S. dollars. It is expected that the impact of the growth of the three companies will be gradually eliminated from 2019.
After the merger, the company strengthened the management of pharmaceutical companies outside Beijing to support its efforts to promote the continued growth of the pharmaceutical business; instead, the company’s 2018H2 consolidated statement scope added Jiashi Minyitong, Jiashi Qianrui and other implant device subsidiaries to continue to promoteValue consumables nationwide sales network, strengthen business management, strengthen account receivables and inventory management while expanding market coverage, and improve business quality.
Risk reminders: The risk of intensified competition in the Beijing regional market; industry policy risks such as pharmaceutical bidding and medical insurance payments; GPO business expansion is less than expected risk; expansion outside Beijing is less than expected risk; goodwill impairment risk.
Investment recommendation In the next six months, maintain the “cautious increase” rating and adjust the company’s EPS for 19 and 20 to 1 in the 2018 annual report.
88 yuan, with a closing price of 16 on February 27.
43 yuan calculation, dynamic PE is 10 respectively.
43 times and 8.
We believe that: 1) As the leading pharmaceutical and commercial company in Beijing, the company took advantage of the implementation of sunshine procurement to benefit from industry consolidation to expand market share and expand and strengthen the Beijing market; 2) The company actively promoted the expansion of its foreign business operations in 2018.In the first half of the year, we actively promoted the cooperation with Medtronic. Abbott strengthened its sales network and enriched its product categories on the national agency cooperation of consumables. In the second half of the year, it consolidated Jiashi Minyitong, Jiashi Qianrui and other implant device subsidiaries.Further improve the nationwide layout of high-value consumables business.
In the next six months, maintain the “cautious increase” rating.